Review on Q DAO Governance token v1.0 by Stephen Toluwani
QDAO claims to join DeFi+CeFi. How true that is? I doubt
QDAO claims a debatable decentralised stance on its Defi+Cefi financing mechanism. In what we see as Defi, no single entity is meant to control the bull of the funds but same can't be said of QDAO. The project which has been licensed in the EU and therefore operate under those laws has a cold wallet storage unit for holding deposits. This means one person could control the funds that move around the system. I began to quell fears of the project being centralised as they pointed out that they are actually a combination of DeFi+CeFi but I couldn't see anywhere in which smart contracts controlled the movement of funds. The whole system is truly really controlled by the DAO who are the holders of the QDAO token but the dissemination of funds is made off from a single wallet controlled, bot singly by the DAO but an entity who is registered with the EU. It's quite safe though but reiterating a Decentralised stance when you are not makes this project susceptible to lack of trust.
The services of this project is mainly focused on yielding profits into ones pooled assets, supplying it for loans to be taken of it and as a collateral for the loan. The project is what I describe as true Defi in terms of its modus operandi but when it comes to the issue of decentralisation, they are 95% not decentralised. Smart contracts only run a chain of commands in the overall setup of the platform. From the good rates they provide as the yield on your pooled asset of over 12 different cryptocurrencies to the loans which can be taken out by collateralizing any of those assets to mint the USDQ at low interest rates, the project gives you the true feeling of Finance on Blockchain with no limits on borders.
The QDAO token is seen as the utility token of the project and the fuel to power it's DAO system. Holders of the QDAO token gets two other benefits worth stating
1. You get variable returns for holding QDAO depending on the revenue generated by the project.
2. Holders of the QDAO Token gets preferential treatment and waivers when taking loans. It more like increases your credit eligibility. Plus you get lowered interest rates
Pros
- The QDAO token offers exclusive membership rights to the governance model of the QDAO Project
- The holders of the QDAO token also get preferential rates for the interests they take out which comes at them for a lower rate
- Holding the QDAO token also gives you a share in the revenue the project makes
- With QDAO, you can pool in assets for profits and take out loans when you need them
- There are over 12 different assets that one can pool into QDAO and the returns differ though they are good value
Cons
- QDAO Project as a whole claims to be decentralised. It's truly doubtable
